Washington: Global markets plunged on Monday following last week’s two-day meltdown on Wall Street, and President Donald Trump said he won’t back down on his sweeping new tariffs, which have roiled global trade.
Countries are scrambling to figure out how to respond to the tariffs, with China and others retaliating quickly.
Trump’s tariff blitz fulfilled a key campaign promise as he acted without Congress to redraw the rules of the international trading system. It was a move decades in the making for Trump, who has long denounced foreign trade deals as unfair to the US.
The higher rates are set to be collected beginning Wednesday, ushering in a new era of economic uncertainty with no clear end in sight.
Indian stocks fell sharply on Monday, seeing their biggest single-day drop in percentage terms since March 2020 amid the pandemic.
The benchmark BSE Sensex and the Nifty 50 index both dropped about 5 per cent after trading opened but then recovered slightly. Both were later trading down about 4 per cent.
Trump says he’s not backing down on tariffs, calls them medicine’ as markets reel
President Donald Trump said Sunday that he won’t back down on his sweeping tariffs on imports from most of the world unless countries even out their trade with the US, digging in on his plans to implement the taxes that have sent financial markets reeling, raised fears of a recession and upended the global trading system.
Market observers expect investors will face more wild swings in the days and weeks to come, with a short-term resolution to the trade war appearing unlikely.
